The following data has been collected about Keller Company's stockholders' equity accounts: Assuming the treasury shares were all purchased at the same price,the number of shares of treasury stock is:
A)1,150.
B)1,000.
C)575.
D)11,000.
E)21,000.

Question

The following data has been collected about Keller Company's stockholders' equity accounts:  Assuming the treasury shares were all purchased at the same price,the number of shares of treasury stock is:
A)1,150. 
B)1,000. 
C)575. 
D)11,000. 
E)21,000.

Quizplus · Accepted Answer

Treasury stock is a company's own stock that has been reacquired by the company and is being held by the company. The balance of the Treasury Stock account represents the cost of the reacquired stock.

In this case, the balance of the Treasury Stock account is $100,000, and the cost per share is $100. Therefore, the number of shares of treasury stock is:

$100,000 ÷ $100 = 1,000 shares

So, the answer is B.

The Following Data Has Been Collected About Keller Company's Stockholders